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Had it for a couple of months and its been perfect. I was driving all day today and not beating on it either and I don't really beat on it nowhere close to what some other people do. All day was perfect but I decided to take a little cruise from my house and 2 miles away I got on the highway that's when it said ENGINE MALFUNCTION REDUCED POWER....& THE ENGINE LIGHT It was driving very rough, and not all the power was there.. so I stopped on the emergency lane shut it off then turned it back on but nothing changed. So I drove it back home. Once I got on my garage it smelled like gas and like its running very rich. Turned it off for about 15 minutes. Then I turned it back on again to see if its gonna do it again and that's when bunch of smoke started coming from the exhaust, and the warnings were still there. Then I shut it off. And didn't bother anymore. The car is bone stock. I see some people had this problem but seems to go away with then after the shut it off and turned it back on. Mine won't go away.

had similar issue occur 4-5 times as revs increased (without going hard). Sometimes in D mode and sometimes manual. No smoke or any other obvious issue. Turn engine off and on again and all error messages get reset and power was restored.
However, last time the messages have been reset but the orange engine light is still on and power appears to be still reduced.
Anyone else know about this issue (late standard 2007 E60 M5 with 80,000 kms now)

Thank you to the ones that commented and shame on how many viewers and no help or support. Anyways I had no choice but to take the car to BMW dealership and although I told them that I'm in the auto industry business they still tried to rape me on unesecary repairs but since I know how **** works that did NOT fly with me. I was told that my spar plugs were burned ($799) car won't blow smoke if spark plugs go out. So after our argument I told them that since that's what they're best at doing if they guarantee that if I spend $799 on spark plugs that it will fix my problem to go ahead and perform the work and if i spent $799 on something unesecary that I would go there pissed and there would be a problem since I'm not someome that can be ****ed with. They kept telling me that that's all they're seeing and without getting rid of that problem first they wouldn't be axle to know the actual issue. Again I told them that if you actually have a real tech checking into the problem to check it again since I'm by no means paying for unesecary repairs, like a lot of people do and get ripped off by mechanics, and told them to only call me after they found the actual problem...5 hours go by and I did recieve the call that I should of got in the first place without trying to ripp me off on $799 spark plug job that was not needed by any means.

So it ended up being Injector 1 went out and needed to be replaced. Since they realized that there not going to rape me they assured me that it was not the spark plugs and that was the actually problem. I authorized the work and also needed a oil change since some gas got into the motor.
They quoted me $1,800 on the injector replacement. I got other quotes from other dealers and jewed them down (YES YOU CAN NEGOCIATE WITH DEALERSHIP SHOP)

So hers what everything ended up costing me:
Injector 1 replacement $1,299
(((( the injector was only $230 the rest is labor))))
Oil Change $115.00
Out the door with taxes included
-----$1,495.98-----
That's not including the $208 for the tow.
To my luck I heard for the BP bad gas sales in August 13-23 and since all I buy is BP Gas I made a claim went thru the hassle for a month and just got a check for $1,703.98 :-)
CHEERS

Thank you for those that commented. Here is the update from the BMW Dealership.
Computer reported misfiring on Cylinder 3 so (and with no suprise now when you look at Stone Roots comments), a new set of spark plugs was fitted to see if this fixed the problem. It didn't. 2 days later no further news - still looking for source of problem.
Be interesting if it ends up being injectors or manifold as others posted. Will let you know what happens.

Thank you for those that commented. Here is the update from the BMW Dealership.
Computer reported misfiring on Cylinder 3 so (and with no suprise now when you look at Stone Roots comments), a new set of spark plugs was fitted to see if this fixed the problem. It didn't. 2 days later no further news - still looking for source of problem.
Be interesting if it ends up being injectors or manifold as others posted. Will let you know what happens.

Mine was misfiring on all the cylinders at least what they said. But I don't trust the dealership at all.
Good Luck

Further to the misfire on Cylinder 3, it looks like the problem has been narrowed down to oil leaking into cylinder 3 (after new spark plugs, etc didn't fix problem). Interestingly, the engine error message (and reduced power) only occurs on cylinder 3, under higher revs/stress in moving from gears 2-3. Not any other gears. Sounds like head may need to come off - will keep you posted.

Well I have a progress update now on oil in cylinder 3. Apparently the sizing of cylinder 3 is larger than BMW spec and other cylinders - faulty manufacturing. So we are in discussion about how best to fix here.

Stay tuned for further updates but in the meantime, BE VERY, VERY CAREFUL ABOUT BUYING ONE OF THESE CARS - THERE MAY BE ISSUES AND CHECK YOUR WARRANTY TERMS VERY CAREFULLY first.

actually worse than that. replaced plugs and most coils and advised oil leaking into one cyclinder and failing compression tests. new engine block and cylinders is the advised remedy. Good luck to those with the v10 M5, I hope this doesn't happen to you - I have moved on.

actually worse than that. replaced plugs and most coils and advised oil leaking into one cyclinder and failing compression tests. new engine block and cylinders is the advised remedy. Good luck to those with the v10 M5, I hope this doesn't happen to you - I have moved on.

lol ouch haha just as I'm getting ready to take the plunge on on an s85 smg

Same issue, "Engine Malfunction Reduced Power" and "increased emissions" warning.... Dont know where to start but the BMW dealership... I have extended warranty, so hopefully it will cover any issues that arise.

The verdict; coil in cylinder number 9 replaced. And the dealer wanted to charge me $1,500.00 for new spark plugs and one coil!!!

Went to autozone ordered the coil and got it done. $80.00 and 1 hour of my time. After watching DIY, ordered a obdII from ebay $135.00 reset the engine light.
Hopefully that will fix the issue!
Back to enjoying my car!!

Ultimately they had to replace my VANOS solenoid. Since that was replaced I've not had the problem again. Fortunately, the car was still under warranty. I don't want to know what it would have cost otherwise.